If someone has been telling you that migrating to the Cloud is expensive, they are just restating the popular myth. It has no foundation on truth. The Unique Selling Proposition (USP) of the Cloud is its cost cutting potential.  When IT budgets are tight and CIOs are looking for innovative ways to reign in escalating costs, the Cloud offers just what they are looking for.  In fact, surveys show that a lowered Total Cost of Investment is the top driver for Cloud adoption.

Does the Cloud really fulfill the promise of cost savings and give an adequate return on investment (ROI)?  The numbers will show that the Cloud has a very positive impact on costs.  Here are a few points that support the contention.

  1. There are no capital infrastructure expenses for setting up the Cloud.  All infrastructure deployments are abstracted to the Cloud vendor and the end user does not have to purchase, invest in or maintain any kind of additional infrastructure on premises.  All existing infrastructure can be strategically used to the benefit of the organization.
  2. The Cloud is scalable and on demand.  The end user is freed from concerns around maintaining additional infrastructure for any peak loads that may be predicted during the business cycle.  They can requisition infrastructure based on current needs and scale up when the requirements increase or scale down when the requirements decrease.
  3. The Cloud uses a “pay as you go” business model.  Users have to pay only for the total amount of resources they use for their computing purposes.  This optimizes infrastructure use.
  4. All this enables accurate cost forecasting and changes the accounting head from “CAPEX” to “OPEX”.
  5. The Cloud is highly available and reliable.  This reduces downtime and incidentally the indirect costs associated with downtime.
  6. The Cloud abstracts much of the maintenance and management of infrastructure to the Cloud vendor.  The end user can reduce the number of personnel deployed for this purpose and reassign Human resources more strategically and profitably to other areas of IT.
  7. The migration of data can be automated.  CIOs do not have to grapple with issues associated with successful completion of backups or taking the backups offsite to a secure data vault.  The data continuously or as per schedule flows offsite to the remote server, via the backup software deployed by the vendor on user systems.